OK, you can cancel anytime but you will get a refund only if you have made no claims in the policy during that year.

Free-look cancellation - This has to be done within 15 days of receiving the policy document. You can write to the insurance company that you wish to cancel and they will refund your premiums after deducting the stamp duty charges and the proportional risk charges for the days that you are being covered.

Cancelling anytime after the free look period - Here too the companies will refund a part of the premiums after adjusting for the time that you were covered. Also, please note that you should not have made any claim to ge a refund. Each company will have different refund grids. I am sharing below the example of one company.

Period of Risk

Premium Refunded

Upto 1 month

75% of Annual Premium

Upto 3 months

50% of Annual Premium

Upto 6 months

25% of Annual Premium

Exceeding 6 months upto 365 days

Nil

A small amount may be deducted as “Administrative Charges”.

You can get a refund for 2 year policies also.

The policy wordings of your plan will have the exact details of the calculation used to refunding the premiums in case of a cancellation.